ZTE Advances Most in Four Years After Report of 4G PlanBloomberg News
ZTE Corp., China’s second-largest maker of phone network equipment, jumped the most in more than four years in Hong Kong trading after a report on approval for fourth-generation service spurred speculation carriers will boost spending.
ZTE climbed 8.9 percent, the most since Jan. 29, 2009, to close at HK$14.14 in Hong Kong. The company’s Shenzhen-traded stock climbed 10 percent, the biggest advance since it started trading in November 1997.
The government may issue licenses for fourth-generation wireless service this year, China Securities Journal reported today, citing Minister of Industry and Information Technology Miao Wei. The timing will be determined by the expansion of a trial by China Mobile Communications Corp., the report said.
“ZTE is a big beneficiary to the capex upside both this year and next year,” Cynthia Meng, a Hong Kong-based analyst with Jefferies Group Inc., wrote in an e-mail today, referring to increased spending by mobile-phone operators. She recommends buying the shares.
The company also said it has entered into a “strategic collaboration” with Intel Corp. for next-generation smartphones based on the new Atom Processor Z2580. Phones with the new processor will double the computing performance and have as much as three times the graphics capabilities of the previous generation processor while maintaining the same battery life, ZTE said in a statement dated yesterday.
— With assistance by Edmond Lococo